Child Benefit Threshold

Jelly169

I was one of the many that even though we only have my salary coming in I was stung by the high income child benefit tax and currently have a large self assessment bill.
Following yesterday’s budget will the new ruling only come in from April? 

bluelad1927

6th April.

foofi22

https://www.gov.uk/government/publications/changes-to-the-high-income-child-benefit-charge

Jonty6262

New changes just helps those on good salaries

poppy12345

Jonty6262 said:

New changes just helps those on good salaries

This is the 2nd comment you made on this tonight. Maybe you should have a read of the sticky at the top of the forum. https://forums.moneysavingexpert.com/discussion/365935/its-about-helping-people-get-their-entitlement-not-about-benefits-policy#latest

borris78

Jonty6262 said:

New changes just helps those on good salaries

Good salary does not equal good income. Salary is only one form of income.

borris78

Jelly169 said:

I was one of the many that even though we only have my salary coming in I was stung by the high income child benefit tax and currently have a large self assessment bill.
Following yesterday’s budget will the new ruling only come in from April? 

It will yes but you may not benefit from this for a couple of years, depending on how you currently pay the tax.

For most people on PAYE, a self-assessment is completed for the last tax year. The child benefit tax is then deducted from pay via PAYE coding notice from the start of the next tax year. For example, the new threshold will apply from the 2024/25 tax year. So:

• A person will complete their tax return once the 2024/25 tax year has ended. e.g. following April 2025, but needs to be submitted by 31 December 2025.
• HMRC will then deduct this from PAYE from the start of the 2026/27 year.

This is the way I understand it, so you'll continue to be tax in the current way for the next two years because most people pay this way in arrears via the self-assessment.